Use the information for Winthrop Company for the year ending December 31, 2009 that follows to answers questions 21 through 23
.
The following are relevant account balances from Winthrop Company’s comparative balance sheet and 2009 income statement.
|
December 31, 2009
|
January 1, 2009
|
Accounts receivable
|
$15,000
|
$19,000
|
Prepaid insurance
|
5,000
|
3,000
|
Unearned revenue
|
8,000
|
11,000
|
Salaries payable
|
9,000
|
6,000
|
Winthrop’s 2009 income statement includes the following:
Sales revenue
|
$89,000
|
Insurance expense
|
4,000
|
Salaries expense
|
31,000
|
21.Determine the amount of cash collected from customers during 2009.
22.Determine the amount of cash paid for insurance during 2009.
23.Determine the amount of cash paid for salaries during 2009.
24.During 2009, Bacon Co. reported a net operating loss of $19,000. The only asset or liability changes during 2009 were a decrease in accounts receivable of $11,000 and an increase in accumulated depreciation of $42,000. Calculate cash flows from operations during 2009 (indicate outflow or inflow).
Use the information for Hampton Inc. for the year ending December 31, 2009 that follows to answer questions 25 through 28
.
The following are relevant account balances from Hampton’s comparative balance sheet and 2009 income statement. Hampton’s balance sheets:
|
December 31, 2009
|
January 1, 2009
|
Cash
|
$ 6,000
|
$ 9,000
|
Accounts receivable
|
8,000
|
12,000
|
Merchandise inventory
|
29,000
|
18,000
|
Prepaid rent
|
6,000
|
4,000
|
Equipment
|
100,000
|
80,000
|
Accumulated depreciation
|
(28,000)
|
(13,000)
|
Total assets
|
$121,000
|
$110,000
|
|
|
|
Accounts payable
|
$ 9,000
|
$ 25,000
|
Dividends payable
|
6,000
|
4,000
|
Common stock
|
38,000
|
32,000
|
Retained earnings
|
68,000
|
49,000
|
Total liabilities and shareholders’ equity
|
$121,000
|
$110,000
|
Other information:
No equipment was sold or retired during 2009. Hampton’s net income for 2009 was $33,000.
25.Calculate depreciation expense for 2009.
26.Calculate the amount of dividends paid during 2009.
27.Determine the cost of the equipment purchased during 2009.
28.Calculate the cash proceeds from the issuance of common stock during 2009.
29.Selected information from the 2008 and 2009 accounting records of Roman Corp. is provided below:
|
12/31/09
|
12/31/08
|
Net cash provided by operations
|
$38,000
|
$7,000
|
Net cash provided (used) by investing activities
|
(19,000)
|
16,000
|
Net cash provided (used) by financing activities
|
43,000
|
(9,000)
|
Cash balance
|
?
|
23,000
|
Calculate the December 31, 2009 ending cash balance.